Avalanche AVAX Faces 8.87% Weekly Loss Near $19.00 Support

Avalanche (AVAX) is currently trading near a critical support level at $19.00, with bearish signals intensifying on the daily chart. The price is hovering around this level, and a breakdown could lead to a sharp decline toward the $17.00 region. The technical chart indicates that AVAX is below its 20-day Simple Moving Average (SMA) at $21.09, further emphasizing the bearish outlook. Additionally, the price is nearing the lower Bollinger Band at $18.39, suggesting a potential for further downside movement as volatility decreases.

The Moving Average Convergence Divergence (MACD) indicator also supports the bearish sentiment. Both the MACD line and the signal line are in negative territory, with the MACD line at -0.58 and the signal line at -0.44. The expanding red histogram bars indicate increasing downward momentum, which could accelerate if the price breaks below the $18.39 support level, potentially pushing it down to $17.00.

Despite the bearish pressure, AVAX is currently within a horizontal trading range, with its price near the channel’s bottom at $19.00. If buyers can defend this level, there is a possibility of a rebound toward the $22.00 mid-range. However, a firm close below $19.00 would likely expose AVAX to a sharper downward move toward the $17.00 level. The current price of AVAX stands at $19.12, reflecting a slight 0.93% gain in the past 24 hours but an 8.87% loss over the past week.

For bullish traders, reclaiming the $21.00 level is crucial to shift short-term momentum in their favor. Until then, the trend bias remains tilted toward further weakness. The narrowing Bollinger Bands suggest a consolidating market, with the risk tilted to the downside. Traders are advised to monitor support zones closely, especially with AVAX testing the lower edge of its range. Without a rise in buying activity at current levels, the risk of a breakdown increases, potentially leading to a more significant decline.